Management Consulting

Aon advised the Trustee of the Rolls-Royce UK Pension Fund on a significant partial buyout transaction exceeding £4.6 billion with Legal & General Group Plc, marking the largest buyout in the UK to date. The client faced the challenge of ensuring the security and certainty of retirement benefits for its members, which required meticulous risk management and strategic collaboration among the Trustee, Rolls-Royce, and Aon. Aon's tailored solution involved acting as both the scheme actuary and insurance & longevity adviser throughout the transaction. This dual role allowed Aon to navigate the complexities of securing a buyout while maintaining the integrity of benefits for both the members included in the buyout and those remaining in the Fund. The successful execution of this transaction not only enhanced the security of member benefits but also demonstrated the effectiveness of bold solutions and careful funding management over the years. The outcome of this collaboration resulted in a landmark achievement for the Rolls-Royce UK Pension Fund, providing greater security for its members and setting a precedent in the pension buyout market. The transaction's scale and favorable pricing, which included a longevity swap novation, highlighted the strong appetite within the insurance market for large-scale deals, indicating a positive trend for future pension settlements.